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The FTC's complaint, filed Thursday, asks the court to force Amazon to refund the money to those customers. In-app purchases typically involve virtual goods bought within an app, like extra coins or energy in a game, according to the FTC. Some bills totaled hundreds of dollars, and some virtual goods cost as much as $99.99. When Amazon launched in-app purchases in late 2011, the store did not require password requirements for purchases, allowing kids to buy items without restraint, the agency said in a press release. Now, however, passwords are required.
"Amazon's in-app system allowed children to incur unlimited charges on their parents' accounts without permission," FTC Chairwoman Edith Ramirez said in the release, "Even Amazon's own employees recognized the serious problem its process created, We are seeking refunds for affected parents and a court order to ensure that Amazon gets parents' consent for in-app purchases."When the FTC initially alerted Amazon to its allegations, the company said in a letter last week that it would fight the agency in court, saying, "We have consistently improved the customer experience in response" to consumer complaints over do iphone screen protectors leave residue in-app purchases, Amazon said it was standing by the previous statements made in the letter..
The complaint argues that an Amazon employee noted this problem a month after the launch of in-app purchases, citing internal communications that said the lack of a password for the in-app purchases were "clearly causing problems for a large percentage of our customers."Amazon did add some permissions to the system eventually, but the agency didn't find those practices sufficient or transparent. One complaint came from a parent who authorized one purchase, but didn't know the approval would also allow any other purchases for up to an hour after the approval. Amazon finally changed its in-app process to include informed consent in June, but the FTC is seeking refunds for the two-and-a-half year period prior to June.
On a call with reporters Thursday, FTC Consumer do iphone screen protectors leave residue Protection Director Jessica Rich called the issues with in-app purchases a "house on fire" type of situation, citing the words of an Amazon employee from the internal communications surfaced in the FTC's investigations, Amazon's refund policy was not adequate, making it hard for "even a tenacious consumer" to get his or her money back, she said, She added that more complaints may surface while the case is in court, The proceeding will determine exactly how much Amazon may have to pay..
The suit is in response to Amazon's resistance to the agency's 20-year agreement to change policies around in-app purchases and accept associated fees. The FTC struck a similar deal with Apple earlier this year. Apple agreed to refund at least $32.5 million to customers as part of its settlement with the FTC. The FTC said Amazon's games actually encouraged children to buy these items by making it difficult to tell when they were using real money or items used as virtual currency. US Sen. Deb Fischer (R-Neb.) came to Amazon's defense shortly after the FTC said it would file a suit against the company, saying that tech companies like Amazon have improved the country's economy.
"To pursue enforcement do iphone screen protectors leave residue against these companies for specific policies in place at the market's nascent stage would constitute a de facto tax on innovation and threatens future growth and opportunity," she wrote in a letter to the FTC on July 9, "Moreover, I am concerned that pressuring companies into sweeping multi-decade consent orders reflects an attempt by the commission to gain by enforcement what has been withheld by Congress -- namely, unchecked regulatory control over the technology sector."Update, 12:06 p.m, PT: Added more background and information from the press call..
The agency is asking the court to force Amazon to refund parents for virtual goods their kids bought before passwords were required. The Federal Trade Commision has filed suit against Amazon, alleging that the company illegally billed parents for "millions of dollars" in unauthorized in-app charges made by children through mobile devices. Be respectful, keep it civil and stay on topic. We delete comments that violate our policy, which we encourage you to read. Discussion threads can be closed at any time at our discretion.
I know, I know, it do iphone screen protectors leave residue seems as if you're lost without your little hand-held helper, It does have its limits, though, It's just a machine, Which, in the current constitution of genetic formulation, still doesn't make it human, Lately, though, Apple has been suggesting that your iPhone is deeply indispensable, You need it to create your meaning of life, You need it to not get fat, And in its latest self-serving public service message, you need it to make parenting easier, Along comes Thai phone provider DTAC to say: "Oh, come on, Get a life."Instead of peddling the notion that you're not human without your phone, it offers the opposite: there are times when technology is useless..